Tom O’Halloran, manager of the Lord Abbett Developing Growth Fund, a small-cap fund that has increased 43% over the past year and 5.5% over the past decade—putting it in the top 3% of its peers, believes technology stocks will lead a continued market rebound.
“I believe that the U.S. economic recovery in 2010 will be stronger than expected,” O’Halloran told TheStreet.com. “So, I’m bullish. In addition to the heavy doses of monetary and fiscal stimuli that have been applied to the economy, corporations are facing easy profit comparisons based on what they earned in 2009. Better-than-expected corporate profits should lift the market in 2010. A return of about 10% is achievable.”
He added: “I believe technology will continue to lead the market in 2010, after outperforming in 2009. The sector is on the verge of another burst of secular growth due to developments such as cloud computing over the Internet, mobile communication devices and the continued evolution of wireless computing.”